the. car's a report is coming up on our take our first a look at the headlines and no fly zone is reinforced across the libyan coast following five days of airstrikes against moammar gadhafi forces the u.n. from anderson says all the targets were hit sites late by reports of dozens of civilian casualties. and several weeks after the unrest in egypt ended president mubarak's control of those who fought for the revolution here they've

been manipulated to allow his allies to sustain power. also three workers have to push him a power plant when exposed to high doses of radiation as work continues to stabilize the facilities cooling system i mean new reports of snow rising from the unstable reactor number one. will not stop it's the cries of report stay with us. and this is the kaiser report covering all the markets financial scandals around the globe let's bring in serious news berber max keiser i brought you a present so you go for a beer. what i'm calling it the c. herbert funk china can it's a little bit of

a plutonium mixed with uranium because according to the first headline max a glowing report on radiation he has apparently radiation is good for you so this is ann coulter and she wrote on her blog that regarding japan the good news is that anyone exposed to excess radiation from the nuclear power plants is now probably much less likely to get cancer we did recently discuss agatha logic capitalism and this is a prime example of it either using fake science or mis misleading using science because there is research into the effects of radiation that can be positive in very very very very very very low dosage is not a nuclear meltdown arsenic in very low doses good dosages. mild beneficial health benefits as i recall but of course you would want to swallow

a gallon of course in coulter i mean this is how the misinformation oracle and a logical capitalism agnus a logic no toll logic capitalism exactly she's got. the same kind of misinformation that gets people to think that radiation is good for you made global warming is good for smoking cigarettes is good it's many facts are based actually durance well she wrote this on her blog a little blog which. it's amplified on fox news if you look at this little video here. lowing radiation very very good with you or not delhomme on radiation poisoning and well it's not me i'm citing a stunning number of physicists and it from going to york times the times of london there's a growing body of evidence that. radiation in excess of what the government says is part of the minimal amount on health care should be exposed to are actually good for you and reduce cases of cancer so that of course was bill o'reilly egging

her on and you can even see in our culture space that she's kind of laughing like she knows it's a joke but that's the way they do it is that a shocking number a stunning number of physicists believe on right and in fact it would be shocking if there were one that believes she were correct to say go on to fukushima it'll be very good for you but i wasn't on the payroll of fox and isn't anyone like murdoch and you know this is a yellow journalism taken to you know a radioactive extreme it's radioactive journalism you've got rupert murdoch fox news and coulter bill o'reilly who package dangerous lies and put into the public space hoping to protect the industrialists that they represent in their quest to dismantle the global economy and cause you know what you see a similar thing in this next headline most britons describe themselves as middle class this is from the telegraph and they say the nation's perceptions come despite

the rising cost of living and fears about unemployment amid the fragile economic recovery yet the last paragraph then goes on to note that actually you know twenty five percent of brits less than twenty five percent even think they're working class when in fact almost fifty percent are this is the confusion with inflation they think inflation is making the rich not poor right and see they can't distinguish what they do from one. goldman sachs or morgan stanley who borrow money from the government is zero percent interest rate speculate keep all the profits and put all the losses in the public domain where the average user of the consumer out there on the street used their credit card to effect the persona of a rich person but their debts never go away j.p. morgan and goldman sachs they push their debts out of the government and then push it on the people but for somebody who goes into debt to effect through the air of someone with a lot of wealth they don't understand that their debts don't go away they're just being used as chumps of course well all of these kind of combine in the next few

had lines as well. in this confusion of what value or wealth is and the confusion often caused by our own governments confusing us through misinformation sergei to lead a cough gets eight years prison sentence as the arrowheads puts it the man who single handedly only stole goldman's algorithm that could quote manipulate markets that's according to the judgment is now the person with the biggest prison sentence to come out of the entire financial crisis sergey alaina cop has just got a ninety seven month sentence for doing absolutely nothing but copying some golden code that would never be recreated by anyone in the meantime the bank exacts who should be in jail are currently benefiting from their co-opted fed to allow them to collect taxpayer funded dividend payments faster so the high frequency trading code of the algorithmic trading code used by goldman to manipulate markets to engage in

high frequency trading to steal money every single day remember they reported last year that in two or three quarters of straight profits not a single down day which is statistically impossible unless you're stealing and using right markets they of course are considered to be adding to the liquidity and market making functionality which are code word for smash and grab and larceny and they are lauded as adding to the economy while this guy's exposing the real financial terrorists is a freedom fighter well a similar story. it's found in the next headline british hacker jailed over seven million pounds of virtual gaming chips scam so this is actually mitchell twenty nine he broke into the zinger mainframe stole the identity of two employees and transferred four hundred billion virtual gaming chips said to be worth more than seven million pounds to himself in reality the guy sold thirty percent of the chips for fifty three thousand six hundred twelve pounds but they prosecuted him on what

they could have been worth to him which was seven million pounds another freedom fighter that we've been talking about zingo for a while they counterfeit money they put counterfeit money into the system in the form of electronic. list no collateral based electronic money that is diluting the value of the u.s. dollar diluting the valley if they're worse than the federal reserve bank a lot of people point the fed and they say the federal reserve bank is counterfeiting money they're destroying the value of the dollar and they use all of their banking connections to undermine the authority of the u.s. government all true but much worse is ingo zynga is worse than the federal reserve bank now this story is incredible the big prints are worthless electronic virtual currency this guy hacks into the mainframe as a freedom fighter to stop the financial terrorism then he resell saw some open market for fifty something cash thousand and he sold them on facebook to other

people who want to use this for it to raise their personal farms on farmville or fight in the mafia wars which are which these currencies are use now this guy's lawyer said the last is ingo is impossible to quantify because the chips were virtual and the company could create as many as it wants he also said that actually michel had enjoyed little benefits and spent most of the proceeds on online gambling on other sites that use real money which is an argument you could make for the whole us economy these. anybody who robs a bank to buy to steal dollars is just using it to fund their debt habits and it's no fun anyway so i'm not guilty of anything right and the point is that if the judge finds this guy guilty then he should find ben bernanke guilty what is the difference between zenga and ben bernanke bernanke doesn't have any collateral in which to float trillions of dollars worth of worthless fee out if you only think backing up the us dollar as has been pointed out on this show by many guests is the

us military that is to say there's no intrinsic value to the us dollar the only value is if you recognize this as an exchange if you don't recognize it will bomb you will kill you it happened to saddam was saying something to it in iran that if you don't use the dollar to trade oil and other commodities will kill you there still you think that backs up the us dollar that's the only thing that makes it of any value whatsoever it as a unit of currency is completely worthless it's less than worthless it's sunny even as valuables as zynga because people actually want worthless dollars to raise worthless virtual vegetables on worthless farmville part of worthless space blog which of course goldman sachs is taking public for fifty billion or more based on people voluntarily checking themselves into a casino good leg state known as goldman farmville well judge philip wausau in making his decision said it is a considerable aggravating feature that someone hacks into systems in this way when so much business and personal finance is done using electronic means therefore the

census has three flecked on public confidence in security systems an online business but someone reaches security in this way that is completely wrong look at the constitution look at were thomas jefferson had to say limits on article seventeen referring to copyrights they should be of limited term unlimited value this is a copyright issue and of course the digital millennium copyright act the patriot act all these guys who are destroying an election. property of the united states and the global economy using fig virtual currency that they're copying infinitely are challenging those who actually want to have real copies of real works of art and works of business ideas that are being pushed out of the intellectual property domain by these terrorists and given the freedom pie or takes on a corrupt judge you know if this were true if this judge were making an accurate decision that the use of these currencies can undermine the system that they

couldn't just be reproduced with a touch of a button then we would see in effect say iraq where nine billion dollars went missing like that it just evaporated and yet it didn't seem to undermine anything excellent point to my point which is that the us dollar is equally worthless and ben bernanke is equally culpable in an equally pernicious scam per this judge's definition lots of selective prosecution which of course it is in favor of the corporations vs the freedom fighters this also takes me on spin next headline are we about to see the first ever bonds backed specifically by the printing press this is the headline from joey's and all legendary paper but who we just interviewed thanks for the fed's ability to monetize the debt to some extent all u.s. bonds are backed by the printing press but it's never explicit last night news broke that japan would issue rebuilding bonds worth ten trillion yen and it sounds as though they'll specifically be backed by the bank of japan but this is exactly

what we're talking about a central bank issuing electronic fee up nonsense and claiming it has value it has no value other than the value to impose debt upon people destroy the ability for honest commerce to take place with the sound of money like gold and silver and to further perpetrate the global in slave bent of a population that is now turning against this form of virtual currency and so. and revolting in north africa the middle east in europe in the united states and in wisconsin the global insurrection against banking occupation but there is a cost to it there is the cost of printing up more yen and that is to the savings to the pensions to those on fixed incomes to people's wealth it took workers while anybody who has to work for a living is no one here that people really less and less people want to describe themselves as working class because why would you want to work for a paycheck which is fixed and yet the value of that fixed income is declining all

the time exactly inflation and why is ben bernanke when he's in front of congress or in these other central bankers and they ask about inflation they say that we don't see any inflation in fact we're scared about deflation that's why we're going to print up another trillion of our field currencies to make our friends wealthy who traded for fees and everyone else totally in debt as a slave thank you stacey so much for being once again the kaiser record thank you oh well i think thank you. don't go away much more coming your way.

download the official pontifications coupons for the ipod touch from the cute tops to. life on the good. video on demand keys my rules. and recess speeds now in the palm of your. wish you. don't come. welcome back to the kaiser court time now to go to washington d.c. and talk with ed harrison former diploma bontrager and now a blogger at credit write downs dot com ed welcome back to the kaiser report thank you max good to talk to you all right and arson revolutions are sweeping the arab world sending oil higher in japan faces nucular meltdown in the u.s. is about to hit another debt ceiling and uses that momentum to launch another war

putting aside the moral and strategic implications is it a good idea fiscally i'm just concerned about the fiscal ramifications because obviously it's not going to be. in terms of the outlook is as compared to say afghanistan or iraq more personally i'm more concerned with you know what sort of what it means for instability what it means for oil prices whether or not this is the sort of permanent war steve is that you know that you expect to happen in the in the near future for the united states right if you remember when the u.s. . was shock and awe the chalabi and the pentagon estimate the cost me fifty billion dollars according to justice nicholas that's going to come in now at two trillion dollars so yeah of course when they start these things they always figure out that it's all just a few billion dollars but it has a tendency to escalate quite rapidly. now ron paul has called this form of

perpetual warfare as you called military keynesianism do you agree i mean explain live up by what ron ron paul is saying there what i think is actually going on is that you can look at it in terms of kennedy's fall of empires the reality is that united states after world war two was a relative basis much better position than we are today so the question has been since then is how to sustain some degree of economic power and military power is a way to sustain that over time we've found is that the benefits of military incursions haven't really accrue to the us domestic economy more it's been the military industrial complex so we're at the point now where the benefits of the u.s. military far outweigh the. the cost in terms of money for instance united

states spends as much money on its military as the entire world can part that's a huge drag on the u.s. economy in terms of alternative uses of that money in terms of infrastructure rebuilding education things of that nature but that's been true for decades right has been a cost benefit analysis for america's military for a is going back thirty years and versus the unemployment the infrastructure collapse the educational falloff the health standard collapse the falling of america's competitive nesa around the world the decrease in america's infant increase and if i'm one terrell more talented versus the other industrialized nations that's been a cost benefit analysis to spending trillions on war for decades right exactly so you know we're a long sort of a hole toward yo. keeping the status quo going without the benefits accruing from that status quo and you're seeing the same thing with other powers eventually there's some sort of incident which causes

a rethink because the decline of that particular country has has caught on you know you look at the u.k. and suez canal incident nine hundred fifty six how was it you know they realized at that point the jig is up we can't really support this level of empire we need to drop our let's talk about quantitative easing for sank at this perpetual warming perpetual quantitative easing i don't know if you saw jim records piece recently on king world is when he talked about how the talk about q.e. three coming up in june is a mis misnomer because the fed's balance sheets roughly three trillion dollars so a maturing of the stuff they've got on their balance sheet already means perpetual q.e. type money printing improper to any is that the case and as a perpetual war go along with this. comment my thinking is that the political

constraints for the fare a lot greater than the hyperinflation us and the people talk about you know things . money money printed on end would say yeah a lot of people say you know you're actually three before it's going to continue on and on but the reality is that the fed is constrained politically at this particular juncture they're not going to be able to go all in and with q.e. i think that we're done after q.e. two the question is what happens if the economy or when the economy relapses will the fed be able to up the ante and go for more or will we have some sort of systemic crisis and i think that you'll pull. there are so constrained but i wouldn't bet on a q e three happening before some sort of systemic crisis happens no matter what scenario you paint it looks like higher interest rates are coming at some point

and this is well so book ok so. here you list this example the reality is if you look at the the interest rates as generally speaking interest rates for longer term maturities are it an expression of the expected short term interest rates there's obviously some risk premium for holding assets there longer deeded but the reality is is that if the fed has zero percent rates forever then there's no reason to expect five or six percent rates for ten year bonds so if the fed signals we're not going to raise interest rates anytime soon there's a there's a huge arbitrage opportunity at that point for someone to go out into the into the market but i up a bunch of long dated assets and then you know short them in some way with treasury

strips or something of that nature so the reality is is that this whole argument that you know interest rates are going up is constrained by the fact that interest rates are zero percent for short dated. you know for short the treasury says well you know that sounds all semantic and pretty much hogwash and that's why gold and so forth bolting higher people are buying gold and silver like john paulson is now going to be the richest man in the world very shortly as soon as paul crosses five thousand listen to your arguments and they say what are you talking about you're just adding more money you're just injecting trillions of credit with this right what this arbitrage a crazy no no no there's a difference between and she depreciation and interest rates just because of my currency depreciates by. fifteen percent or twenty percent doesn't mean that interest rates go up you have a prime official evidence with japan just take a look at japan do you see interest rates at seven percent i mean these guys have

two hundred percent debt to g.d.p. and people like recruits have been talking for ten years that japan has got some sort of you know massive debt spiral it's not so great there you have the evidence it's actually not true well let's let the market decide how about what why not. just like their body how do they know let me get in here. my question let's say why don't we have the market step up how the fed step back and see what is the true demand for us ten year now it's in five year now it's out there in the marketplace and that if you take the fed which is the biggest buyer of its own paper you've got bill gross of pimco saying you know what the fed is removed from the equation and japan's no longer buying china's no longer buying is no longer this artificial market who's going to buy u.s. treasuries i have to keep interest rates artificially cheap then as i just told you if interest rates are zero percent you will have buyers at a minimum list just

a scenario interest research group or set the fed stops buying asset prices stop being elevated you have systemic crisis of some sort united states g.d.p. swoons the media. people will go to treasuries as you know because of the flight to safety you know they'll go to treasuries are risky assets give a perfect scenario rate there for a decrease in interest rates as i say it could if the fed says you know twelve months out the economy's looking bad we're going to have rates at zero croisset obviously if you're buying a twelve month a one year treasury why would you pay three percent for the treasury when in fact the fed has already told you that. rates will be zero percent it doesn't make any set for you to do is do them and do the math ok when you end up with negative interest rates and that's a loss of purchasing power and that's

a reason to buy gold and silver and that's the reason for hyperinflation as people completely lose faith with these currency magicians and scoundrels in your town washington d.c. no wonder you're viewing this in this way you're being corrupted by inside the beltway thinking you know it all but the reality is hyperinflation is a political it's a political action it has nothing to do with money the reality is hyperinflation occurs in specific circumstances and those circumstances are political that is a loss of faith in the current. tax evasion foreign currency. for of course it liabilities by the central government and some sort of loss of productive assets those are the preconditions for hyperinflation you don't get it just by printing money you certainly can't get currency to be slipped but you don't get hyperinflation it just it's not true right now japan has announced they're going to issue some reconstruction bonds that for the first time in history that

i'm aware of they're going to be backed by the bank of japan now it's just the first bond collateralized entirely by the printing press in your knowledge that harrison well bonds are collateralized full faith and credit of the governments issue the currency it's not as if it's backed by gold or silver so obviously you know the reality is for any any particular bun it could be you know monetized by the by the fiscal or by the monetary forward yeah but they're saying that the bonds have no connection to dental an economy they're just going to print out a bunch of paper and they use it as a meeting of exchange even though it's inherently worthless i mean does that sound unsustainable to me but i know the euro paper bike and. i love paper can love people but whatsoever actually i think a few currencies are not the way to go i believe that actually we should go away from currency but i do better understanding of the money system the fact that

if the currency system none of the assets are actually another liability of the government or backed by anything other than the faith and credit of the nations that issued the paper the reality is they could always print more money if they wanted to do so that's true in the united states and that's what hyperinflation as i said is a psychological it's a political it's because of the loss of faith in the currency as long as you know the legal tender laws are there as long as you have to pay taxes in a currency basically you have nowhere to go that's the reality ok that's all the time we have this week with you at harrison and thanks so much for being on the kaiser report thank you max writing that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest and harrison credit write downs dot com i want to send me an e-mail please do so i kind

of reported r t t v dot ru until next time this is max keiser saying bye you know. home. mom.